RES-8359 LOU Orange City Fire Fighters, Inc. Local 2384 effective 7-01-1994 to 6-24-1995RESOLUTION NO. 8359
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ORANGE APPROVING THE LETTER OF UNDERSTANDING
BETWEEN THE CITY OF ORANGE AND THE ORANGE CITY
FIRE FIGHTERS, INC. LOCAL 2384 OF THE INTERNATIONAL
ASSOCIATION OF FIRE FIGHTERS, AFL-CIO
CONCERNING WAGES, HOURS, AND OTHER CONDITIONS OF
EMPLOYMENT FOR THE PERIOD OF JULY 1, 1994 TO JUNE 24, 1995
AND AMENDING RESOLUTION NO. 7624 FOR SAID
EMPLOYEES.WHEREAS, the City of Orange (hereafter "City") and the Orange City Fire Fighters,
Inc.Local 2384 (hereafter "Union") have met and conferred in accordance with the requirements
of the Meyers-Milias-
Brown Act; and WHEREAS, the City and the Union have reached agreement on
wages, hours, and other conditions of employment for the period of July 1, 1994 to and including
June
24, 1995;and WHEREAS, the City and the Union have agreed upon amendments
to Resolution 7624 as more particularly set forth in the attached Letter
of Understanding; and WHEREAS, such changes as have been agreed upon by both
City and Union represent meaningful efforts on the part of both parties to
address significant financial difficulties and resulting budget shortfalls currently faced
by the department.NOW, THEREFORE, BE IT RESOLVED that the City Council of the
City of Orange does hereby adopt the changes to the existing Memorandum of Understanding
and adopts the Letter of Understanding attached hereto as Exhibit "B" between the City and Union
as fully
set forth herein.ADOPTED this 19th dayof
Julv 19....94....lr~~~~/rntf2 ~~City
Clerk he
otOrange GENE REYER Mayor of the
City
of Orange BY:~~~
yor
I hereby certify that the foregoing Resolution was duly and regularly adopted by the
City Council of the City of Orange at a regular meeting thereof held on the 19thday of
July , 19 94 by the following vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS SPURGEON, BARRERA, COONTZ, MURPHY
COUNCILMEMBERS NONE
COUNCILMEMBERS MAYOR BEYER
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City erk of t City nge
2-Reso. 8359
LETTER OF UNDERSTANDING
BETWEEN
THE CITY OF ORANGE
ORANGE CITY FIRE FIGHTERS, INC. LOCAL 2384
EFFECTIVE JUNE 1, 1994 THROUGH JUNE 24, 1995
This Letter of Understanding ("LOU") is entered into by and between the City of Orange
City") and the Orange City Fire Fighters, Inc. Local 2384 ("Union").
In May, 1994, the City and Union met and discussed issues related to fiscal problems that the
City and the Fire Department encountered at the end of its 1993-94 fiscal year.
The discussion resulted in this LOU between the City and the Union, who have agreed to
the
following:1. Cashina Out of Accrued
Time Effective May 15, 1994, members of the Orange City Firefighters, Inc. Local 2384,
agreed to defer until the first full pay period after July 1, 1994, the provision for cashing out
any accrued time, including compensatory time, vacation, and holidays. Furthermore,
all overtime, including FLSA overtime, shall be accrued as compensatory time until after
July 1, 1994, at which time the practice will revert back to the provision of the previous
LOU dated in September of 1993. In addition, Union agrees that any vacation accrual
above the maximum accrual amounts set forth in the current MOU between the City and
the Union will not be paid until after July 1, 1994. Exceptions may be made for
emergency situations on a case-by-case basis, as approved by
the Fire Chief.2. . Health Insurance - Article VI. Section
6.1 Effective July 1, 1994, the city shall contract with the Public Employees
Retirement System PERS) to make available those health insurance benefits provided under
the Public Employees Medical and Hospital Care Act (PEMHCA). The PERS Health
Benefits Plan shall replace any other health benefits program maintained by the city or union
for eligible employees, eligible retirees, and their eligible surviving annuitants.
Employees may participate in only one of the health plans offered
by PERS.A. Except as provided in Section B Flexible Benefits Plan, the City shall
contribute toward the payment of premiums under the PERS Health Benefits Plan on behalf
of each eligible active employee, and to the extent required by law, each
eligible retiree annuitant of PERS, an equal contribution of $16.00
per month.B. Flexible Benefits Plan. For all active full time eligible employees, the
following amounts per month to provide funds for optional dental plans, vision plans, health
plans, or miscellaneous pay as established by the Internal Revenue Service,
Section 125 Flexible Benefits Plan (this will not eliminate Section 6.2 as
Single
Two Party
Family
204
388
493
Furthermore, if PERS California Firefighters Health Plan premiums increase during the
term of this LOU, the City shall increase the Flexible Benefits contribution amount by
the difference between the new premium rate and the old premium rate up to the
following amounts:
Single
Two Party
Family
259
502
665
Examples of how the City's Flexible Benefit contribution would escalate if an increase
occurs are shown below:
Single Premium Example
SAMPLE A
Current With $25 Increase in Premium
I City Flexible Plan Contr. $204
Plus City Health Contr. 16
Less Insurance Prem ium - 175 I
City Flexible Plan Contrib.Plus
City Health Contrib.Less
Insurance Premium 229
16
175
Difference
to Employee $ 45 Difference to Employee 45 In
this sample, the increase of $25 in the insurance premium was absorbed by the City.The
City increased its Flexible Benefit Contribution from $204 to $229, a $25 increase.SAMPLE
B Current
With $120 Increase in Premium I
City Flexible Plan Contr. $204 Plus
City Health Contr. 16 Less
Insurance Premium - 175 I City
Flexible Plan Contrib.Plus City
Health Contrib.Less Insurance
Premium 229 16
295
Difference
to
Employee $ 45 Difference to Employee 20 In this
sample, $55 of the increase in the insurance premium was absorbed by the City,which resulted
in an increase in the City's Flexible Benefit contribution from $204 to 259, the
maximum allowable under this LOU. The remaining portion of the increase,69, was
absorbed by the employee.The City'
s payment towards the Flexible Benefit Plan is exclusive of the $16 payment in Section 2A.
C. An employee cannot be enrolled in the PERS Health Benefits Plan if a spouse is
enrolled with the City or enrolled in an agency with PERS health, unless the employee
or the spouse) is enrolled without being covered as a family member. Additionally, an
employee may choose to not be enrolled in the PERS Health Benefits Plan. If an
employee chooses not to be enrolled in a health plan, the employee must provide proof,
as determined by the Personnel Director, that comparable medical insurance is in full
force and effect. Based upon determination that insurance is in full force and effect,
eligible employees shall receive $121.00 per month toward the Flexible Benefits Plan.
In the event that the employee loses eligibility (with documentation), the employee may
enroll in the PERS Health Benefits Plan pursuant to the PERS Health Benefits Plan
rules and regulations.
3. Temporarv Vacatinq of a Position
Union agrees to extend a vacancy of one Fire Safety Specialist position for the term of this
LOU. City agrees that Firefighter Ian MacDonald, who is temporarily filling this vacancy,
will not be used as a "floater", but will fill a long-term vacancy in
Suppression.4. FLSA Overtime for Administrative
Captains City agrees to a similar settlement with the Administrative Fire Captains (four
individuals)as was agreed to with the Battalion Chiefs. However, to minimize the impact to the
budget,Union agrees to defer the settlement to the Captains until after July 1,
1994.5. PERS Retirement - Article XII. Section 12.1
Effective July 1, 1994, City will discontinue the current practice of allowing employees to
pay their own PERS during the last year of employment, while receiving a commensurate
increase in salary. City will return to the former practice wherein the city paid the
employee's share of PERS. This practice will be consistent with current language as
agreed to in the MOU Resolution 7264, Article XVI, Section 12.1 and 12.2.
Upon written notice and request of either party to modify the terms of the City-Union
MOU prior to June 24, 1995, the parties shall meet and confer in good faith for the purpose
of reaching any new
agreement.I~ r
ORANG~
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ORANGE CITY FIREFIGHERS, INC.
LOCAL 2384
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